Your Source for Regulatory Intelligence

Market Structure Weekly with Larry Tabb, June 1, 2018

Market Structure Weekly with Larry Tabb, June 1, 2018

Posted on Wed, Jun 6, 2018 @ 11:15

The big news out of Washington this week was the Fed’s move to relax Volcker Rule restrictions on bank trading, reports Tabb Group founder and research chairman Larry Tabb in this week’s market structure segment. But don’t expect the restrictions to be eliminated, he notes. Looking at the industry overall, Tabb discusses Bank of America’s and JP Morgan’s flat Q2 trading revenue, Wall Street’s dominance over European banks, the success of alpha-generating hedge fund stars, and what it takes to succeed at quantamental investing. Next, he examines Goldman’s payments push and the troubles of European banks, including cuts at Deutsche Bank, Barclays, and Deutsch Borse. In the exchange space, Tabb highlights Nasdaq’s and Cboe’s fight against the SEC access fee pilot, the pros and cons of the pilot, as well as its potential fatal flaw. In addition, Tabb talks about equity market venue innovation, MiFID II’s failure to shed light on equity flows, and Brexit’s possible impact on MiFID’s rules. Turning to fixed income, he reviews ICE’s deal for TMC Bonds and the progress of non-cleared margin rules. Tabb also delves into the crypto space, including the U.S.’ criminal probe into bitcoin price manipulation, a $4 billion ICO, Coinbase’s attempt to attract institutional investors, the rise of hybrid decentralized crypto exchanges, and the challenge of crypto trade surveillance. Finally, he explores data and technology developments, from GDPR’s go-live to his own research on the evolution of the OMS.